Regulations

Binance blocks US customers as it plans to launch a regulated platform for them

Binance blocks US customers. The world’s leading virtual currency exchange, Binance, has announced that it will sideline its customers in the United States.

In a Twitter post, Changpeng Zhao, CEO, Binance announced that exchange would soon be blocking users in some jurisdictions including the United States from trading on Binance.com.

He wrote:

“There will be a few restrictions on Binance.com accompanying this. But some short term pains may be necessary for long term gains. And we always work hard to turn every short term pain into a long term gain.”

The cryptocurrency exchange announced that it will be updating its terms of use and may require customers to provide further evidence if necessary to be able to validate if they are allowed the company’s policies to trade. The revised agreement mentioned that any US corporation or individual won’t be able to use the platform.

The United States users have a window of 90 days to adapt to the new terms and after September 12 this year, those who will fail to comply will continue to have access to their funds and wallets but won’t be able to make deposits or trade on  Binance.com.

Although Binance will be ceasing trading operations with the United States citizens, Binance announced that it would soon launch a regulatory compliant exchange called “Binance.US” with the help of BAM trading Services, FinCEN registered company.

Zhao said:

“We are excited to finally launch Binance.US and bring the security, speed, and liquidity of Binance.com to North America. Binance.US will be led by our local partner, BAM, and will serve the US market in full regulatory compliance.”

Roughly 20 percent of Bincance.com’s daily traffic comes from the United States. While blocking US users will hurt the exchange’s financial records, CZ believes it will be beneficial in the long term.

As Binance blocks US customers, do you think the regulators are having the upper hand in the crypto space or will is meant to bring sanity in the market?

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Brian Armstrong considers margin trading as Binance makes it real

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.